Gold and Silver Price Forecast: XAU/USD Retreats from $3,400 While XAG/USD Breaks Above $35

Gold (XAU/USD) slipped below $3,300 in Monday’s session after stronger-than-expected U.S. jobs data pushed the dollar higher, weakening the case for near-term Fed rate cuts. May’s Nonfarm Payrolls came in at 139,000, beating forecasts of 130,000, while unemployment held steady at 4.2%. This reinforced expectations for the Fed to maintain interest rates, limiting gold’s upside due to its non-yielding nature.

Still, looming U.S.-China trade talks in London may support safe-haven demand if tensions escalate.

Gold Technical Outlook

• Resistance: $3,400
• Support: $3,230 neckline, then $3,200 and $3,150
• A break below $3,200 could spark deeper declines. For bullish momentum to resume, gold must reclaim $3,430. The RSI remains neutral, showing no clear trend dominance.

Silver (XAG/USD), by contrast, broke decisively above $35 following a drop in the gold-to-silver ratio from resistance at 102.50. Silver had consolidated between $31.70–$33.60 and now shows strong upside potential.

Silver Technical Outlook

• Support: $35 (recent breakout level)
• RSI: Overbought, suggesting a possible short-term correction before continuation higher
• Failed breakdowns around $31.80 and successful breakout above $33.60 indicate growing bullish momentum.

US Dollar Index (DXY) Outlook

• The dollar index remains under pressure despite rebounding off the 98.00 support.
• Support: 98.00
• Resistance: 100.50
• A clean break below 98.00 could trigger a decline toward 96.00, boosting gold and silver further.

Stay updated with Daily Forex Pakistan.